Lecture 4 Reading and Notes

Lecture 4 Reading and Notes - LectureNotes4:...

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Lecture Notes 4: First vs. Second nature: Primary: Non-processed goods: (Animal, Agricutlture, Lumber) Seconday: Processed Goods: Traditionally, The cost of primary products tend to fall. Developing countries are trying to  base their economies on both secondary and primary goods, not just primary.  GATT Treaty:  After WWII, there was drastically reduced tariffs on secondary products.  NOT  PRIMARY.  Primary products are traditionally subsidized by developed country’s government. (Government  Cheese)  Adding Secondary Goods:  ~Add Infrastructure to process new goods ~Human Resource Space ~Initial Capital  ~Domestic or Foreign Investment  Competition for Investors: Investors look at: Corruption, Predictability,  Productivity: Cost of Telephone has greatly decreased, so has data storage. (Flash drive prices are  deceases rapidly) This is in part due to digitization. Digitization is the cause of this. The element  of labor is being taken out of. Traditionally this would mean that unemployment would increase, but the other side is  that the cost of living/prices/etc adjusts. New jobs are also constantly being created. New jobs 
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need to be created faster than old jobs are being taken away. The inverse of this causes 
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Lecture 4 Reading and Notes - LectureNotes4:...

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